Subaru

Bachman Subaru

9800 Bluegrass Parkway ,
Directions Louisville, KY 40299

  • Sales: (877) 202-9236
  • Service: (866) 980-5171
  • Parts: (888) 289-5781

Bachman Makes The Difference!

Info

Pros & Cons of Leasing & Financing in Louisville, Kentucky

When looking at getting a new car, there are different options to consider. Our buying guide offers tips to help guide you through the car buying experience. You can either buy or lease a new or pre-owned Subaru. There are advantages to leasing and financing and the breakdown below will help determine what's best for you.


However, if you need more information, feel free to call (877) 202-9236 or visit Bachman Subaru's Finance team, who will help you choose the best option for your next Subaru.
 

MONTHLY PAYMENTS


Leasing

When leasing a new Subaru, the payments are usually less per month than if you were financing.  With a lease you only pay for the portion of the vehicle you use.  At the end of the lease you can purchase it for a predetermined residual value.  You can also walk away and get into something else.  Sales tax, use tax, and other affiliated fees are often associated with a lease payment.


Financing

Monthly payments are often higher because you are paying for the entire vehicle. Over the course of the loan you are responsible for the selling price, taxes, license, registration and any other fees.  At the end of the loan you own the vehicle.  Whether you finance or lease, while you are making payments the bank owns the vehicle.   


Cash

Very few people actually pay cash for a vehicle.  There is no denying it is nice to have no monthly payments; however, when you own a depreciating asset you are technically still making payments.  Paying cash for a vehicle ties the money up where you can't access it in the event of an emergency.  With rates as low as they are many of our customers finance or lease in order to gain access to their money.


RATES


Leasing

Lease rates, also called money factors, are determined by the manufacturer or lessor and are provided to the customer based on approved credit. These rates change frequently so check out our current models with leasing rates / specials here.


Financing

Annual Percentage Rates (APR) for vehicle purchases are required to be disclosed by federal law. You can check APR specials here.

BEGINNING COSTS


Leasing

At the beginning of a lease you may pay cap cost reduction (what would be called the 'Financed Amount' in a loan), government or lessor charges, insurance, first monthly payment, security deposit, any prior lease or credit balance.


Financing

When you buy your Subaru, you could pay the full price and purchase the vehicle outright or you could make payments through a loan. You will have to pay sales tax or other state taxes, government or lender charges, insurance, first monthly payment, a security deposit, prior vehicle loan balances, or a prior credit balance.

MOVING AND MILEAGE RESTRICTIONS


Leasing

Some lease requirements restrict lessees from moving out-of-state with the vehicle. If you are considering a future move, you should check the terms of your lease closely and speak with your dealer regarding questions.

Additionally most leases restrict the maximum number of miles the lessee can drive the vehicle per year, with overage charges for additional miles driven.


Financing

Buying a vehicle, either outright or by financing, often do not restrict moving within a country, but may restrict moves outside the country.

There are no mileage restrictions or penalties with your own vehicle. Drive an unlimited number of miles - especially important if you typically drive more than 12,000 to 15,000 miles per year.

GAP COVERAGE


Leasing

GAP insurance covers the difference between the actual cash value of a vehicle and the balance still owed through the financing. GAP coverage is usually included in lease agreements. If it is not, you can usually purchase it.


Financing

GAP coverage is not required for financing a purchase, but it is still a good idea in case of a disaster, such as a total loss. GAP insurance would also cover the full value of the totaled car. However, it's not usually included in loan agreements and must be purchased separately.

WEAR AND TEAR


Leasing

Many people lease for the length of time the manufacturer's warranty is in effect, that way most repairs are typically covered. However, leases will specify what charges there will be for wear and tear when the vehicle is returned.


Financing

Since the Subaru is yours, you won't have to pay for wear and tear up-front. However, wear and tear could impact trade-in or resale value.

VEHICLE RETURN


Leasing

At the end of your lease, you have several options. You can lease another new Subaru or buy the one you've come to know and love. The choice is yours!


Financing

When you finish paying off your loan, the Subaru is yours! You can keep it for 10 more years, sell it or trade it via the Subaru Guaranteed Trade-In Program for a newer Subaru.

END COSTS


Leasing

The total cost of leasing a vehicle is generally lower than financing. This is due to lease savings on depreciation and gap coverage. However; it is harder to build equity when you lease.


Financing

The total costs for financing a vehicle are generally more than leasing. However; at the end of the loan term you own your Subaru.

Lease vs. Finance

Bachman Subaru

9800 Bluegrass Parkway
Directions Louisville, KY 40299

  • Sales: (877) 202-9236
  • Service: (866) 980-5171
  • Parts: (888) 289-5781

Hours

  • Monday 09:00am - 09:00pm
  • Tuesday 09:00am - 09:00pm
  • Wednesday 09:00am - 09:00pm
  • Thursday 09:00am - 09:00pm
  • Friday 09:00am - 09:00pm
  • Saturday 09:00am - 06:00pm
  • Sunday Closed